Nokia sells its Espoo headquarters, stays on as tenant
Cash-strapped Nokia hopes to raise cash by selling its head office to another Finnish company
Nokia is desperate to raise money, so much so that the smartphone maker announced Tuesday it is selling its Espoo headquarters to another Finnish company. Exilion took over the 517,000 square-feet property for a reported 170 million euros (or $222 million); the sale will be completed by the end of the year.
But all is not lost, as Nokia noted that it has already signed a long-term lease to stay on as a tenant. At least it won't have to give up that view of the Gulf of Finland just yet. And hey, maybe as long as the Nokia staff is still around, employees will continue lovingly referring to the sleek steel-and-glass building as the "Nokia House."
The Espoo property has, after all, served as the smartphone maker's head office since 1997 (currently, it's home to some 1,800 Nokia workers). But as Nokia's CFO Timo Ihamuotila noted in a company release, Nokia isn't in the real estate business. Here's how he put it:
"We had a comprehensive sales process with both Finnish and foreign investors and we are very pleased with this outcome. As we have said before, owning real estate is not part of Nokia's core business and when good opportunities arise we are willing to exit these types of non-core assets. We are naturally continuing to operate in our head office building on a long-term basis."
Nokia's financial rut hasn't exactly been a secret, as it's already seen a downgrade in credit from all three major firms. The Espoo property sale, while not a saving grace, is certainly a start in cleaning up that financial mess.